LRK - Lark Distilling Co.

[peter2]

Lots of speculation concerning the former CEO. Some of this speculation questions his integrity. In view of past shenanigans in the Tasmanian whiskey industry I hope the board arranges a thorough and independent audit of the current inventory.

I won't be buying this falling knife.

 

[Dona Ferentes]

• Net Sales of $10.4m, an increase of 78% on previous corresponding period
• Operating Normalised EBITDA of $1.04m, an increase of 130% on pcp
• GP% Margin of 61.9% a decline of 3.5 ppts on pcp as a result of supply chain constraints and changing channel mix as a result of COVID 19
• Litres Under Maturation is 1.34m litres, an increase of 250k litres from 30 June 2021 and before adjusting for the Shene acquisition
• Net Sales Value of the Whisky Bank at Maturation is $290m, up from $236m as at 30 June 2021 and before adjusting for the Shene acquisition
• Cash at Bank at 31 December 2021 of $56.2m, with an additional $10m available through NAB Debt Facility

An extensive global search had commenced in December 2021. This process has now been accelerated, and we are pleased to report we are in discussion with a mix of well experienced, high calibre candidates. Laura McBain will continue to act as Managing Director and has committed to serve in this role until the right candidate has been appointed and joins the business.

Outlook
Lark has a comprehensive program during FY22 H2 for innovative new products and releases to celebrate and promote 30 years of Lark and Tasmanian whisky. This is an outstanding opportunity for the company to highlight its brand credentials and reinforce the legacy and significance of the Lark brand in Australia and globally.
An expanded and focused domestic sales team will drive distribution opportunities in Australia aimed at increasing Lark’s footprint nationally.

......So, seems to have stabilised, and the Litres under Maturation are as expected. But a lot is glitzy marketing which will only go so far.

 

[peter2]

Just for a lark, had a look at this one again since it's been more than one year. Price may have found a bottom as there is a higher low on the daily. It's not ready yet for me.

Looked through their FY23 H1 investor briefing. Good margins but huge costs.
Noticed one picture that had me gagging.

How could anyone drink while having a haircut? Disgusting.

 

[galumay]

Never understood the enthusiasm for this business with the narrative speculators, including some small fundies that play that game. Its a horrible business burning through massive amounts of cash.

It may well be tradable though, @peter2, should be a fair bit of liquidity. If it survives!

 

[Dona Ferentes]

Lark Distilling has downgraded its expectations on sales to $7.4 million for 2H23, down from $9.6 million recorded in the prior period.

.... fickle market. In a promotion for 'exotic Tasmania as a foodie paradise', the state now has 80 whiskey and other distilleries , $670 million of single malt under maturation and annual production of $424 million. Bubble??.

 

[JohnDe]

Lark Distilling has downgraded its expectations on sales to $7.4 million for 2H23, down from $9.6 million recorded in the prior period.

.... fickle market. In a promotion for 'exotic Tasmania as a foodie paradise', the state now has 80 whiskey and other distilleries , $670 million of single malt under maturation and annual production of $424 million. Bubble??.

Just about everyone is making a Whiskey or Gin these days.

 

[Ferret]

Things haven't improved for Lark since the last post nearly a year ago.

No sign of a bottom on the chart, but I wonder if at the current valuation there could be takeover interest from one of the big players in the drinks industry?

I might keep an eye on this one.

 

[JohnDe]

Things haven't improved for Lark since the last post nearly a year ago.

No sign of a bottom on the chart, but I wonder if at the current valuation there could be takeover interest from one of the big players in the drinks industry?

I might keep an eye on this one.
View attachment 175062

I visited them when I went to Tasmania a few weeks ago, they have a nice set up. Sadly, they did not get a sale from me because of their service.

 

[rcw1]

Good afternoon
three yearly week chart says it all really:

But some movements above the Simple and Weighted moving averages ... explore further ... with monthly daily chart:

Nice gain.
Plenty of reading in the Announcements section to be undertaken. Do note however
Lark director Warren Randall’s Seppeltsfield Wines tipped in $15 million. Under the agreement, the Barossa Valley winery would provide premium barrels for 10 years with Lark holding one-way exclusivity as well as an option to extend the supply agreement by another decade. The barrels, which Lark uses to mature its whisky, are central to Lark’s ambitions to expand locally and overseas.

It would also take Randall from about 3.8 per cent of the register to 19.5 per cent, not far off the maximum permissible 19.99 per cent under takeover rules.
See attachment.

Not holding.

Kind regards
rcw1